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Vehicle Insurance Peddling: Fraudsters Risk N5 Million Fine, Imprisonment – New Bill

-by our correspondent.

Agents and swindlers especially those selling fake third party motor insurance policies are in for a hard time when the Industry Consolidated Act becomes operational.

The Act provides that for transacting underwriting business without a license, defaulters would pay a fine of N5 million or go behind bars for two years.

Currently, the racketeers are mainly in the vehicle insurance business, issuing forged insurance papers to millions of customers in Nigeria.

To deal with the racket in the industry, the Consolidated Bill states that “any person who transacts insurance business without being licensed for the purpose commits an offence and is liable on conviction, in the case of a company or other combination of persons, each principal officer of the company, firm or other combination of persons responsible, is liable to a fine of N5 million or imprisonment for a term of two years: or an individual, to a fine of N1 million or imprisonment for a term of two years.”

Director-General, NIA, Yetunde Ilori

The Director-General of the Nigerian Insurers Association (NIA), Yetunde Ilori, said the association has embarked on awareness campaigns on the menace of fake insurance papers as well as continued to educate insurance companies on the need to upload their motor policies on the Nigerian Insurance Industry Database (NIID).

“ About 2.5 million vehicle insurance policies have so far been uploaded on the NIID, the platform remains one of the best ways to curb fake motor insurance policy and help vehicle owners easily verify the genuineness of their policies, with the Unstructured Supplementary Service Data (USSD) code *565*11#.” She said.


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